Hemp industry rules loosened in sweeping law change

New regulations are set to loosen restrictions on the hemp industry in New Zealand, according to Regulation Minister David Seymour. The changes aim to remove what Seymour calls outdated and heavy-handed licensing rules.

Changes to Hemp Regulations

Under the new rules, industrial hemp growers will no longer require a license if their plants contain less than 1% THC. However, growers will be required to notify both police and the Ministry for Primary Industries (MPI) before planting to ensure authorities are aware the crop is not illegal cannabis.

Seymour stated that industrial hemp has very low levels of THC and should not be subject to the same strict regulations as cannabis. He spoke to media at the Hemp NZ Food Factory in Ashburton following the announcement on Thursday morning, saying the industry had been treated like a criminal for too long.

“The industry has been held back by outdated, heavy-handed rules that treat growing low-risk crops like high-risk drugs. That ends now,” Seymour said.

The changes, approved by Cabinet, include the following:

Growers will also be required to notify MPI at the same time as police. Hemp use will remain restricted to fibre, seed, and oil, with additional permissions for medicinal cannabis supply. Existing food safety and medicinal cannabis requirements will continue to apply.

Seymour said the changes are expected to generate a benefit of $7.5 million over 10 years, and approximately $41 million over 20 years, reducing costs and providing certainty to growers and investors.

He added that the changes highlight the need for the Regulatory Standards Act, which would have identified the disproportionately high costs of regulating industrial hemp.

rnz.co.nz